What does time in business mean for a loan?
Time in business: Time in business is how long a company has been operating. Business lenders use it, along with revenue and credit, when deciding whether to lend.
Lenders often measure time in business from the date the business was formed or started generating revenue. Each lender sets its own minimum.
Newer businesses may have fewer options and may be asked for more documentation, such as bank statements, tax returns or a business plan.
When you compare offers
Have documents that show when the business started and its revenue history ready before you compare lenders.
Related guides
- What Lenders Look At for Small Business Loans
The factors lenders commonly review for small business financing, the main types of business loans, and how to compare offers by total cost rather than payment alone.
- How to Prepare to Qualify for a Small Business Loan
Practical steps to get ready before you apply for small business financing: what to check, which documents lenders commonly ask for, and how to compare offers once you have them.
This glossary is for general educational purposes and isn't financial, legal or insurance advice. Lendara is not a lender and does not make credit decisions. Lendara is a free online marketplace that connects you with participating lenders and providers, who set their own eligibility rules, rates, fees and terms. Lendara may receive compensation from partners, which may affect which offers appear and their order.